COPPER-GOLD: Northern Dynasty funds next steps at Pebble project

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Work at the Pebble copper-gold project in Alaska is moving forward. (Image: Northern Dynasty Minerals)

ALASKA – Vancouver-based Northern Dynasty Minerals, sole owner of the Pebble project 300 km from Anchorage, has arranged a US$5 million bought deal financing that will allow it to continue the 2019 field program and complete the environmental impact statement for the world’s largest undeveloped copper-gold deposit.

The lead underwriter is Cantor Fitzgerald Canada. That company and a syndicate of underwriters has agreed to purchase 12.2 million common shares of Northern Dynasty at a price of US$0.41 each, for gross proceeds of US$5.0 million. The underwriters have been given an over-allotment of an additional 1.83 million shares worth another US$750,000. The underwriters will also receive a 6.0% commission on the gross proceeds. The deal is expected to close on June 24, 2019.

Northern Dynasty says it continues to explore long term product financing options. Additional funding for the project is required by the end of 2019.

When the preliminary economic assessment was delivered in 2011, the cost of the Pebble project was estimated at US$5.76 billion. That is likely to change as the project goes forward and is de-risked.